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Facts
The assessee, Shriram Properties (Coimbatore) Private Limited, filed its return for AY 2015-16 declaring a loss. The Assessing Officer, under Section 143(3), made additions including a large disallowance of business expenditure and a disallowance under Section 14A. The CIT(A) confirmed the AO's order ex-parte due to the assessee's non-appearance after several hearing notices.
Held
The Tribunal condoned the delay of 398 days in filing the appeal. Finding that the assessee claimed non-receipt of notices, the Tribunal, in the interest of justice, set aside the CIT(A)'s order and remanded the case for de novo adjudication, providing the assessee another opportunity to be heard.
Key Issues
The primary issues were the condonation of delay in filing the appeal and whether the CIT(A) was justified in passing an ex-parte order, denying the assessee an opportunity of being heard regarding the additions made by the AO.
Sections Cited
143(3), 115JB, 14A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: HON’BLE SHRI MANU KUMAR GIRI & HON’BLE SHRI S. R. RAGHUNATHA
आदेश / O R D E R PER MANU KUMAR GIRI, JM:
This appeal is preferred by the assessee against the order of the Ld.CIT(A), NFAC, Delhi dated 13.12.2013 for AY 2015-16.
At the outset, the registry has noted that the appeal has been filed after a delay of 398 days and the assessee has filed explaining the delay. Having gone through the contents of the affidavit, we are satisfied that there is sufficient cause for delay in filing the appeal. Therefore, we (AY 2015-16) Shriram Properties (Coimbatore) Private Limited condone the delay of 398 days and proceed to adjudicate the appeal of the assessee.
The assessee is a private limited company engaged in the business of property development. It filed its return of income for the assessment year (In short ‘AY’) 2015-16 on 30.09.2015 declaring a loss of Rs 5,02,18,203/- under the normal provisions of the Income Tax Act, 1961 and a loss of Rs.5,06,28,893/- under 115JB of the Income Tax Act, 1961 (In short ‘Act’). Tax payable thereon was computed at Rs. Nil.
In the assessment made under section 143(3), the Assessing Officer (‘AO’ in short), made additions and disallowances and reduced the Loss to Rs.26,10,051/-. In the assessment, the ld. AO made the following additions while arriving at the taxable income under the regular computation which are being contested by the appellant:
Sl. No. Particulars Amount in Rs. 1. Disallowance of Business Expenditure 4,75,36,943 2. Disallowance u/s 14A 70,759 Being aggrieved by the assessment order passed under section 143(3), the appellant preferred an appeal before the ld.CIT(A).
In appellate proceedings, the ld.CIT(A) has given hearing notices dated 24.12.2020, 26.08.2022, 25.11.2022, 20.01.2023 and 28.04.2023 asking it to furnish the written submissions in support of its grounds of appeal and statement of facts, on or before 08.01.2021, 05.09.2022, 02.12.2022, 27.01.2023 and 15.05.2023. In response to the notices the appellant has (AY 2015-16) Shriram Properties (Coimbatore) Private Limited replied on 28.12.2020, 03.09.2022, 27.01.2023 and 15.05.2023. However, the ld.CIT(A) has affirmed the order of the AO ex-parte.
Now the assessee is in appeal before us.
Ld.AR of the asssessee submitted that the assessee has not received hearing notice issued by the Ld.CIT(A) although the assessee had earlier sought adjournments. He further prayed that one more opportunity of being heard be given to the assessee to substantiate its case before the Ld.CIT(A).
Per contra, the Ld. Departmental Representive, Mr.Bipin C.N, CIT relied on the orders of the Ld.CIT(A) and pleaded for the dismissal of the assessee’s appeal.
We have heard the rival submissions and perused the records. We find that there was no appearance by the assessee’s representative before the Ld.CIT(A) despite notices issued. Further, in the interest of justice, we deem it fit to set aside this appeal to the file of the Ld.CIT(A) for de novo adjudication of the appeal after providing an opportunity of being heard to the assessee. The assessee is directed to substantiate its case forthwith without fail, failing which the Ld.CIT(A) at liberty to proceed with the appellate proceedings as per law. The Ld.Counsel has also pointed out the new email address of assessee as: gautam.shenoy@shriramproperties.com and Mobile No.9632967722 as per Form-36. The Ld.AR also assured this bench that in case the appeal is set aside, the assessee will prosecute its case before the CIT(A).
In the result, the appeal of the assessee stands allowed for statistical purposes. Order pronounced on the 31st day of July, 2025, in Chennai.